Question: Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion.

 Check my work mode : This shows what is correct or

Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 4 You've observed the following returns on Pine Computer's stock over the past five years: 19 percent, -13 percent, 16 percent, 21 percent, and 10 percent. Suppose the average inflation rate over this period was 1.4 percent and the average T-bill rate over the period was 4.5 percent. 11.11 points a. What was the average real return on the company's stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the average nominal risk premium on the company's stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) X Answer is complete but not entirely correct. 7.10 X % a. Average real return b. Average nominal risk premium 4.1 %

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!